Failed merger leads to Pinsent defection

Maddocks
chief executive
David Rennick
, who played an instrumental role in recent merger talks between his firm and global player
Pinsent Masons
, will now help the latter become a competitor in Australia.

Several Australian firms have conducted merger talks over the years that broke down due to a lack of partner support – the former Mallesons Stephen Jaques and Britain’s Clifford Chance being just one example.

But it is rare for the managing partner of one firm to jump ship to the other at the end of the failed process, which is exactly what Mr Rennick has done.

Pinsent Masons had been exploring an entry into Australia to help it grow its network of offices in the Asia-Pacific region. Maddocks – a mid-sized domestic corporate firm with offices in Melbourne, Sydney and Canberra – had also been looking to grow and was considering deals with several global firms, chief among them, Pinsent.

It is understood the talks with Pinsent had become serious and although a deal was close to being struck, ultimately the terms on offer failed to sway enough partners. But rather than negotiate a deal with another firm for Maddocks, Mr Rennick is now going to play a major role in helping Pinsent establish itself in Australia.

A Pinsent spokesman said Mr Rennick had been hired as a consultant to begin early next year. He will step down as Maddocks’s chief executive on December 24 and leave the partnership altogether in February. Mr Rennick declined to comment this week.

International reach to expand

Pinsent, which has been considering a move to Australia for some months, said Mr Rennick would “assist the senior management of the firm in evaluating the opportunities and make recommendations to the firm’s partnership accordingly".

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“It would be premature to speculate at this stage about what the ­outcome of that review might be," the spokesman said.

Maddocks chairman
Stan Kondilios
would not discuss why the merger talks had broken down. But he did say the firm had been “looking at agility in the way we deliver services to market, and this has included discussions with a number of international law firms with whom we have enjoyed a relationship for a number of years".

Pinsent’s plans for Australia were part of an effort to expand its “international reach", the firm said. It was now “giving careful consideration to how we can capitalise on opportunities in the Australian market and in parti­cular the strong linkages to our substantial Asia business and clients based around our offices in Singapore, Hong Kong, Shanghai and Beijing," the firm’s spokesman said.

Pinsent merged with Scottish firm McGrigors in 2012 and now has offices in Europe, Asia, Africa and the Middle East. It would arrive in Australia at a time of unprecedented competition from local and foreign firms. Newly merged entities such as Ashurst, DLA Piper, Herbert Smith Freehills, King & Wood Mallesons, K&L Gates and Norton Rose Fulbright have been joined by the likes of Allen & Overy, Clifford Chance and Squire Sanders.

Some firms remain independent

Large Australian firms, such as Clayton Utz, Corrs Chambers Westgarth and Minter Ellison have so far remained independent.

Maddocks said that “at this stage" it had decided “to remain an independent Australian law firm". Maddocks has about 69 partners and another 200 lawyers, whereas Pinsent has more than 350 partners and annual revenue of £309 million ($560 million).

Asked whether Maddocks expected other partners and junior lawyers to follow Mr Rennick, Mr Kondilios said his firm provided “our people with excellent work and opportunity in a growing and collegiate firm. In this respect, we’re confident that we will maintain our current employee and partner retention rates."

Maddocks thanked Mr Rennick for his 18 years’ service to the firm, the last five of which were spent as its chief executive.“We’re disappointed that David is moving on, but he leaves a large, accomplished team that will continue to build our strong brand," Mr Kondilios said.

Pinsent’s spokesman described Mr Rennick as a “senior, well-respected ­figure in the region, well known to many of us".